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Consuming ourhome equity

Oct. 01, 1991
Oct. 01, 1991

Table of Contents
Oct. 1, 1991

Cover
MONEY FORECAST
MONEY UPDATE
Departments
COVER STORY

Consuming ourhome equity

A sharp rise in tax-deductible home-equity and second-mortgage
loans has contributed to a dramatic decline in the equity that
Americans hold in their homes, as the charts above show. Indeed, the
equity held by homeowners fell 15.7% in 1990, the steepest drop in at
least 45 years. Alarmed by this trend and by the extent to which
consumers are using home-equity loans for purposes such as vacations
and car purchases, Congress has asked the General Accounting Office
to investigate equity borrowing. Depending on the GAO's report,
expected in three months, Capitol Hill may curb the tax advantages of
these lines of credit.

This is an article from the Oct. 1, 1991 issue

BOX: COMMON INDEXES FOR ARMs

One-year Treasury constant maturity 6.31%
11th District cost of funds 7.16
National mortgage contract rate 9.12

Note: Averages are for July, June and July, respectively. Source:
HSH Associates. For the latest information on mortgage rates in your
area, plus a kit that will help you select the right loan, call
toll-free for MONEY Magazine's Mortgage Match at 800-243-8474. Cost:
$29.95

CHART: NOT AVAILABLE

CHART: NOT AVAILABLE
CREDIT: Source: HSH Associates
CAPTION: LEADING RATES IN THE 24 LARGEST METRO AREAS

CHART: NOT AVAILABLE
CREDIT: Source: HSH Associates
CAPTION: LEADING FIXED RATES IN THE 24 LARGEST METRO AREAS

CHART: NOT AVAILABLE
CREDIT: Source: HSH Associates
CAPTION: LEADING ARMs IN THE 24 LARGEST METRO AREAS

This is an article from
the Oct. 1, 1991 issue